Uncertainty clouds future outlook

GUSTINE – City leaders are putting the final touches on a 2008-09 budget under a cloud of uncertainty which starts with concerns about what impacts the state budget crisis will have at the local level this year and extends to worries about possibly having to cut services next year to make ends meet.

“This is going to be a difficult year, but we will get by,” City Manager Margaret Silveira said. “It is next year that I am worried about.”

Council members held what was likely their last budget workshop last Tuesday. The budget will come back Aug. 26 for formal adoption.

City staff had originally projected a general fund deficit of about $400,000. A second round of spending cuts decreased the deficit somewhat, but the city is still looking at dipping into reserve funds for more than $300,000 to make up the shortfall.

“We asked every department to cut back 10 percent, and then we went back and asked for another 5 percent reduction,” Silveira explained. “They were already running on a very thin budget.”

According to Silveira, two police department positions are currently vacant. One had been previously frozen due to budgetary concerns; a second is being left open while officials monitor the budget situation.

Several scenarios were discussed as the council looked to future years – none of which were particularly appealing.

Staff and council members discussed the possibility of having to cut back on the community promotion budget next year. Currently, that fund supports organizations such as Citizens for the Fourth and the Gustine Chamber of Commerce.

“Those are the two biggest expenses (from community promotion),” Silveira said. “They are in the budget this year, but next year we may have to look at cutting back. We hate doing that because we know that is important, but anything that is not directly related to operating the city next year is going to be the first areas we have to look at.”

Reductions in some city services are also possible next year, city officials caution, such as a cutback in operating hours at the city swimming pool.

Silveira said that the city is “looking at any new type of revenue that is out there” to help the budget.

A public safety tax to support police and fire protection services is on the November ballot.

At last week’s workshop, city officials tried to look beyond the current fiscal year.

“It was important as we were adopting this budget that we also talked about how we are going to address next year’s budget,” Silveira explained.

The city will closely monitor its budget situation in the months ahead, and will be able to make mid-year revisions if necessary.

Assessments adopted

The council last week also set the annual assessments for a citywide landscaping and lighting district and the Borrelli assessment district.

The citywide district assessment will total $82.34 for the 2008-09 fiscal year. That represents an increase of $4.24 for lighting services.

The Borrelli assessment, which includes fees for storm drainage and recreation, increases from $186.24 to $204.86.

From the audience, former council member Mark Melville questioned whether proper notification had been given before increasing the street lighting assessment.

City officials, however, said they believe the correct steps were taken.

On certain assessments, staff said, voters approved “pass through” increases which allow the amount to be adjusted for rising expenses.

“We have done everything we were supposed to do, and I don’t think we should delay it,” said council member Joe Oliveira.